ACROSS THE NATION.

Governors win review of Medicaid rules

February 23, 2004|By Items compiled from Tribune news services.

WASHINGTON, D.C. — After strenuous protests from governors of both parties, the Bush administration said Sunday that it would reconsider tough new rules on the financing of Medicaid that could limit the states' ability to provide health care to millions of poor people.

Tommy Thompson, the secretary of health and human services, conveyed the decision to state leaders during the winter meeting of the National Governors Association.

Federal officials did not withdraw the proposed Medicaid rules. Instead they promised to consult governors and to solicit public comment for 60 days before putting the restrictions into effect.

The restrictions would give federal officials sweeping new power to review state decisions on Medicaid spending and the sources of revenue used by states to pay their share of the costs.

Federal officials say states--including Illinois and Michigan--have used creative bookkeeping and other methods to obtain large amounts of federal Medicaid money without paying their share.